ISSUE

We regularly encounter questions regarding the filing of Form 8282, Donee Information Return which is generally required if your institution sells or otherwise disposes of certain donated property within three years of the date the original donee received the property.

SITUATION

Idaho Theological Seminary (ITS) is a private college exempt under Internal Revenue Code section 501(c)(3) and 170(b)(1)(A)(ii).  They are not required to file Form 990 annually.

ITS’s Controller calls to ask a question.  “A donor gave us $77,000 of publicly traded stock.  We sold the securities three months after they were donated.  We understand that we do not have to sign Form 8283, but do we have to file a Form 8282 since the securities were sold within three years of the date we received the property?”

“Great question,” we say, “but generally you are not required to file Form 8282 for publicly traded securities because those are excepted from the definition of ‘charitable deduction property’ in terms of Form 8282.”

“That’s good to know.  That’s what we thought.”

“Also, you should know that if you dispose of charitable deduction property within 3 years of the date the original donee received it and the organization does not meet one of the two exceptions (stated in the instructions and below), the organization generally must file Form 8282 within 125 days after the date of disposition.”

 

RULES

From 2018 Form 8282 instructions:

Who Must File

Original and successor donee organizations must file Form 8282 if they sell, exchange, consume, or otherwise dispose of (with or without consideration) charitable deduction property (or any portion) within 3 years after the date the original donee received the property. See Charitable deduction property [below].

If the organization sold, exchanged, or otherwise disposed of motor vehicles, airplanes, or boats, see Pub. 526, Charitable Contributions.

Exceptions. There are two situations where Form 8282 does t have to be filed.

  1. Items valued at $500 or less.
  2. Items consumed or distributed for charitable purpose.

Original donee. The first donee to or for which the donor gave the property. The original donee is required to sign Form 8283, Noncash Charitable Contributions, Section B. Donated Property Over $5,000 (Except Certain Publicly Traded Securities), presented by the donor for charitable deduction property.

Successor donee. Any donee of property other than the original donee.

Charitable deduction property. Any donated property (other than money and publicly traded securities) if the claimed value exceeds $5,000 per item or group of similar items donated by the donor to one or more donee organizations. This is the property listed in Section B on Form 8283.

 

BOTTOM LINE

  • Many institutions are not aware of the rules regarding the filing of Form 8282, Donee Information Return.
  • If your school is a “successor donee” of charitable deduction property, you should ensure that you have information as to the date the original donee received the property and the information required by Form 8282.
  • Form 8282 requires information on your organization, the original donor and successor/previous donees, and information on donated property.
  • Charitable deduction property generally does not include money or publicly traded securities).
  • Check out the instructions to Form 8282 for more information if you believe you might have a filing requirement.

Specific questions? Email Dave Moja

The information provided herein presents general information and should not be relied on as accounting, tax, or legal advice when analyzing and resolving a specific tax issue. If you have specific questions regarding a particular fact situation, please consult with competent accounting, tax, and/or legal counsel about the facts and laws that apply. 

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